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| Thread ID: 92698 | 2008-08-19 05:33:00 | A simple accounting question | Digby (677) | PC World Chat |
| Post ID | Timestamp | Content | User | ||
| 698548 | 2008-08-19 05:33:00 | Hi Guys I have a small business and do my own accounts. Last year I bought a couple of small items for the business A cheap mobile phone $ 129.00 and a cheap printer $ 149.00 An office chair $ 69.00 Do I need to declare these as assets and depreciate them, as they will probably only last a year or two and then have to write them off as a loss. Or could I claim them as expense items eg stationary etc ? |
Digby (677) | ||
| 698549 | 2008-08-19 05:54:00 | you can write them off as a low cost asset - under $500 | wotz (335) | ||
| 698550 | 2008-08-19 06:00:00 | There are the lesser mortals among us who think that, "A simple accounting question" is a contradiction in itself. "Simple" and "accounting" in the same sentence? Don't be silly!:confused: | Roscoe (6288) | ||
| 698551 | 2008-08-19 08:48:00 | Dumb question I'm asking, but have you looked on the site of the people who might know? www.ird.govt.nz |
Sick Puppy (6959) | ||
| 698552 | 2008-08-19 09:36:00 | I would categorize them as expenses and just claim the GST back. | beeswax34 (63) | ||
| 698553 | 2008-08-20 04:03:00 | wotz got it in one but the actual rules from here : www.ird.govt.nz are : Subject to certain rules, assets costing $500 or less can be written off in the year of purchase or creation. ...and... Some assets don’t depreciate for tax purposes. These assets include: • low-value assets (costing less than $500) that are fully written off on acquisition ...and... From the 2005–06 income year low-value assets, ie assets that cost less than $500 acquired on or after 19 May 2005, are deductible in the year they are acquired or created, provided that: • they aren’t purchased from the same supplier at the same time as other assets to which the same depreciation rate applies (unless the entire purchase costs less than $500) • the assets won’t become part of an asset that is depreciable, for example, the cost of materials to build a wall in a factory. Does that answer your question? As for the GST, irrespective of the value of the asset, you claim the full allowable amount of GST up front (the actual timing will depend on which basis but my guess is the payments basis so it will be straight away). |
andrew93 (249) | ||
| 698554 | 2008-08-20 19:07:00 | Thanks guys. I did have a quick look at the IRD web site, but could not find anything. Well done. |
Digby (677) | ||
| 698555 | 2008-08-20 21:43:00 | There are the lesser mortals among us who think that, "A simple accounting question" is a contradiction in itself. "Simple" and "accounting" in the same sentence? Don't be silly!:confused: Quite a few of the questions are simple, it's the answers that go into 'multiplexity'. ;) |
R2x1 (4628) | ||
| 698556 | 2008-08-20 21:54:00 | and often the questions can be really simple, especially if you ask the wrong question....! | andrew93 (249) | ||
| 698557 | 2008-08-21 00:31:00 | ...and lets not start about IRD's phone system. | pine-o-cleen (2955) | ||
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